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“Real estate is a local business driven by individual associates and their presence within their communities, in other words the agent is the brand not Keller Williams” KW Philosophy kw

2012 presentation

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Page 1: 2012 presentation

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“Real estate is a local business driven by individual associates and their presence within their communities, in other words the agent is the brand not Keller Williams”

KW Philosophy

KW Philosophy kw

Page 2: 2012 presentation

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History of Keller Williams

History of Keller Williams19

83Ke

ller W

illiam

s Fou

nded

1987

Kelle

r Willi

ams E

xpan

ds in

to Sa

n An

toni

o, D

alla

s & H

ousto

n

1991

Kelle

r Willi

ams b

ecom

es a

fran

chise

1993

Gary

Fire

s Him

self

& Hire

s Mo

Ande

rson

as C

EO

1993

Kelle

r Willi

ams E

xpen

ds In

to O

klaho

ma

& Col

orad

o

kw

2005

KW C

ARES

raise

s ove

r 4.6

Milli

on fo

r the

ir ag

ents

dur

ing

Katri

na.

Mor

e tha

n al

l oth

er Fr

anch

ises C

ombi

ned!

2005

Willi

ams R

ealty

Inte

rnati

onal

Fran

chise

Hea

dqua

rters

Ran

ks

Amon

g Na

tion’s

Bes

t Pla

ces t

o W

ork

2005

The M

illion

aire

Rea

l Esta

te In

vesto

r Pub

lishe

d

2005

The M

illion

aire

Rea

l Esta

te A

gent

Pub

lishe

d

2006

Kelle

r Willi

ams R

ealty

gro

ws t

o 72

,303

ass

ocia

tes i

n sh

iftin

g

mar

ket

2007

Kelle

r Cen

ter f

or R

esea

rch

in R

esid

entia

l Rea

l Esta

te M

arke

ting

Laun

ches

at B

AYLO

R Un

ivers

ity.

The K

eller

Cen

ter w

as fu

nded

thro

ugh

a $5

milli

on d

onati

on b

y

Kelle

r in

Janu

ary 2

007

2007

Kelle

r Willi

ams R

ealty

Stak

es a

Cla

im in

Luxu

ry H

omes

Mar

ket

2007

Kelle

r Willi

ams R

ealty

Cas

e Stu

dy

now

par

t of S

tanf

ord

and

Yale’

s cor

e MBA

curri

culu

m

2008

J.D. P

ower

and

Ass

ocia

tes n

ames

com

pany

hig

hest

in

custo

mer

satis

facti

on

2001

REAL

Tren

ds, T

op Fi

ve M

ost A

dmire

d In

divid

uals

Gary

Kell

er

2003

REAL

TOR

Mag

azin

e's 2

5 M

ost I

nflue

ntial

Peo

ple i

n Re

al E

state

Gary

Kell

er, 2

nd M

ost i

nflue

ntial

Page 3: 2012 presentation

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History of Keller Williams

History of Keller Williams20

07Ke

ller W

illiam

s Rea

lty C

ase S

tudy

now

par

t of S

tanf

ord

and

Yale’

s cor

e MBA

curri

culu

m

kw

2009

KW ra

nked

as t

he N

o. 1

real

esta

te fr

anch

ise o

n th

e 31s

t

Annu

al Fr

anch

ise 5

00 lis

t by E

ntre

pren

eur m

agaz

ine.

Durin

g th

e sam

e wee

k, th

e com

pany

was

also

vote

d th

e

Mos

t Rec

ogni

zabl

e Bra

nd o

f Rea

l Esta

te Fr

anch

ises f

or

2009

in a

n in

dustr

y-w

ide s

urve

y for

the S

wan

epoe

l

TREN

DS R

epor

t.

2008

J.D. P

ower

and

Ass

ocia

tes n

ames

com

pany

hig

hest

in

custo

mer

satis

facti

on

2009

J.D. P

ower

and

Ass

ocia

tes n

ames

com

pany

hig

hest

in

custo

mer

satis

facti

on

for s

econ

d ye

ar in

a ro

w20

09RE

D DA

Y La

unch

es

2009

Kelle

r Willi

ams R

ealty

Clim

bs to

Third

-Lar

gest

Rea

l Esta

te Fr

anch

ise in

Uni

ted

Stat

es

2010

J.D. P

ower

and

Ass

ocia

tes n

ames

com

pany

hig

hest

in

custo

mer

satis

facti

on

for

3rd ye

ar in

a ro

w

2010

Real

Esta

te Le

ader

’s SH

IFT

Hits

New

York

Tim

es, U

SA

Toda

y and

Wal

l Stre

et Jo

urna

l and

Bes

t-sell

er Li

sts

2011

Kelle

r Willi

ams R

ealty

Clim

bs to

Seco

nd-L

arge

st R

eal

Esta

te Fr

anch

ise in

Uni

ted

Stat

es

Goal

s set

for w

orld

wid

e exp

ansio

n to

add

75,

000

inte

rnati

onal

ass

ocia

tes

2011

Kelle

r Willi

ams R

ealty

to La

unch

eEdg

e, th

e Rea

l Esta

te

Indu

stry’s

Firs

t Com

preh

ensiv

e Age

nt B

usin

ess P

latfo

rm

Seam

less S

oluti

on A

vaila

ble t

o Ne

twor

k of M

ore T

han

80,0

00 A

ssoc

iate

s

2010

Trai

ning

Mag

azin

e Hig

hest

rank

ing

real

esta

te fr

anch

ise

on th

e ann

ual T

rain

ing

Top

125,

#47

Ove

rall

2010

Entre

pren

eur M

agaz

ine

Fran

chise

500

List:

No.

78

/ Ove

rall F

ranc

hise

Com

pany

;

No. 6

6 / A

mer

ica's

Top

Glob

al Fr

anch

ises

2011

Win

ner o

f Inm

an In

nova

tor A

war

d

Mos

t Inn

ovati

ve R

eal E

state

Web

site o

r Ser

vice -

eEdg

e

Page 4: 2012 presentation

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KWRI Executive Team

KWRI Executive TeamMissionTo build careers worth having, businesses worth owning and lives worth living.

VisionTo be the real estate company of choice.

ValuesGod, family and then business.

Gary Keller, co-founder and chairman

Win-Win – or no dealIntegrity – do the right thingCustomers – always come firstCommitment – in all thingsCommunication – seek first to understandCreativity – ideas before resultsTeamwork – together everyone achieves moreTrust – begins with honestySuccess – results through people

The WI4C2TS Belief System

Mo Anderson, Vice Chairman

Mark Willis, CEO

“ We believe that real estate is a local business, driven by individual agents and their presence within their communities.”

“ We believe in results through people.”

“We are a company that thinks like a top producer, acts like a trainer-consultant, and focuses all its activities on service, productivity, and profitability.”

Mo Anderson, Vice Chairman

“The ALC is the heartbeat of the market center – involved and invested in every decision that affects our agents.”

“As long as we listen to our agents and deliver what they want – they will prosper and so will we.”

kw

Page 5: 2012 presentation

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The Keller Williams Difference

The Keller Williams Difference

Dependent

• Associates are dependent on the company;

•Financial gain is directed primarily to the brokers and the company;

• Associates have fewer opportunities for accumulating wealth

Independent

• Associates are independent and have landlord/tenant relationship

with their company

• Associate –focused environment with limited high-level support

• Associates assume all the financial, legal and management

responsibilities

Interdependent

• Associates have an interdependent relationship with the company and a

mutual interest in success;

• Associates and brokers work as teams in achieving financial goals;

• Associates do not assume financial, legal or management responsibilities

Traditional Companies 100% CompaniesKW

kw

Page 6: 2012 presentation

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Economic Model

Economic Model kw

Interdependent

70/30 split

Agents company dollar is capped

Agents royalty is capped

Pay as you go

Agents don’t owe a cap

Rent and expenses pass-through

MC’s lead with revenue

Open books

Page 7: 2012 presentation

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Agent Centric Your Brand Matters

Agent Centric Your Brand Matters

48 percent buyers and 64 percent ofsellers found their agent through areferral or personal contact with a friend, neighbor or relative.

64 percent of buyers and 66percent of sellers only contactedone real estate agent beforedeciding who to work with.

Only 3 percent of buyers and 4 percentof sellers cited an agent’s affiliation witha particular firm as the most importantfactor when choosing their agent.

64%66%

3% 4%

}

}Who is the No.1 brand in real estate?

YOU are!“We stand behind our agents, not in front of

them.” - Gary Keller,

Chairman and Co-Founder

kw

Page 8: 2012 presentation

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Agent Centric YourBrand Matters

Agent Centric YourBrand Matters

YOUR BRAND NOT OURS

YOUR PHONE# NOT OURS ON YOUR SIGNS AND

MATERIAL

YOUR LISTING YOUR LEAD

AGENTS HAVE SAY

PROFIT SHARING

TAUGHT TO BUILD YOUR BUSINESS

OPEN BOOKS

NO UP CHARGE ON E&O, EXPENSES ETC

}

}Who is the No.1 brand in real estate?

“We stand behind our agents, not in front of

them.” - Gary Keller,

Chairman and Co-Founder

YOU are!

kw

Page 9: 2012 presentation

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Agent Leadership Council (ALC)

Agent Leadership Council (ALC) kw

ALC membership is a unique opportunity to have a choice in driving the success and profitability of your market center. The ALC acts as the Market Center’s “Board of Directors” and help build a market center that no one would ever leave.

ALC membership is a unique opportunity to have a choice in driving the success and profitability of your market center. The ALC acts as the Market Center’s “Board of Directors” and help build a market center that no one would ever leave.

The Market Center LEADERSHIP!!

The Market Center LEADERSHIP!!

Page 10: 2012 presentation

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Best Education in the Business

Best Education in the Business kw

Page 11: 2012 presentation

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New York Times Best Seller

New York Times Best Seller

Best Education in the Business

Best Education in the Business kw

"THIS BOOK PRESENTS A NEW PARADIGM FOR REAL ESTATE AND SHOULD BE REQUIRED READING FOR REAL ESTATE PROFESSIONALS EVERYWHERE."

- ROBERT T. KIYOSAKI, NEW YORK TIMES BESTSELLING AUTHOR OF RICH DAD, POOR DAD

"REAL ESTATE IS A SIMPLE BUSINESS THAT’S OFTEN OVERCOMPLICATED IN ITS APPLICATION. SHIFT IS A BOOK THAT GETS TO THE HEART OF WHAT MAKES A REAL ESTATE BUSINESS WORK

AND WORK WELL, NO MATTER THE MARKET. READ IT OVER AND OVER AGAIN, AND KEEP IMPLEMENTING THE BASICS OF THIS POWERFUL TOOL."

- TONY DICELLO, AUSTIN, TEXAS, NATIONAL REAL ESTATE SALES TRAINER AND COACH

New York Times Best Seller"FEAR KEEPS SO MANY ASPIRING INVESTORS FROM TAKING THAT FIRST STEP. THIS BOOK

TURNS THAT FEAR INTO THE CONFIDENCE THEY NEED TO BEGIN BUILDING THEIR FINANCIAL FUTURE.”

- PAT PUCKRIDGE, ASHEVILLE, NC

Keller Williams UniversityREAL ESTATE AGENT TRAINING | MASTER THE MARKET OF THE MOMENT

KELLER WILLIAMS UNIVERSITY COURSES ARE DESIGNED TO TEACH YOU THE SYSTEMS AND MODELS OF SUCCESSFUL REAL ESTATE AGENTS. SOME DESCRIBE KWU AS A NEVER-ENDING SUPPLY OF INFORMATION THAT IS CONSTANTLY UPDATED WITH VALUABLE INSIGHTS FROM

LEADERS WITHIN THE COMPANY. ONE OF THE GREAT THINGS ABOUT BEING A KELLER WILLIAMS AGENT IS THE SHARING OF IDEAS AND SUCCESSFUL BUSINESS TACTICS

Page 12: 2012 presentation

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On Demand learning 24/7

On Demand learning 24/7 kw

Page 13: 2012 presentation

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BOLD FACTS:

•BOLD participants average 9.56 contracts during the 8 weeks of the course.

•Nationwide, BOLD increased written units of attendees by 57%, sold units by 27%, and GCI by 13% of BOLD students versus non BOLD students!

Written by MAPS President, Dianna Kokoszka, BOLD includes the mindset, skills and scripts that have propelled Kokoszka's own million-dollar real estate career and secured her place as the industry's "Queen of Systems and Scripts."

BOLD Business Objective: A Life by Design

BOLD

BOLD kw

"This month, our office took 108 listings - and 91 of them belonged to people in BOLD! These last two months have the been best in our market center's history for closed units, profit and profit share."Smokey Garrett, team leader, Dallas, Texas

Page 14: 2012 presentation

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Foundationkw | TECHNOLOGY

The My Listings, My Leads Philosophy

You work hard to get your listings, so in our book, you deserve every lead that comes from them. Our entire online lead generation system is built around this philosophy.

Page 15: 2012 presentation

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Technology

Technology kw

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Technology

Technology kw

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Marketing

Marketing kw

Page 18: 2012 presentation

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Sioux Falls Launch

Page 19: 2012 presentation

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KELLER WILLIAMS RED DAY

KELLER WILLIAMS RED DAY kw

Page 20: 2012 presentation

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KW Cares

KW Cares kw

kwCARES

KW Cares is a tax exempt 501(c)(3) public charity created to support Keller Williams Realty associates and their families in times of extreme hardship as a result of a sudden emergency. Hardship is defined as a difficult circumstance that a person or family cannot handle without outside help.

This charity is the heart of the Keller Williams Realty culture in action – finding and serving the higher purpose of business through charitable giving in the communities where our agents live and work.

KW Cares was the brainchild of the agents of Keller Williams Realty and Mo Anderson, Vice Chair of Keller Williams Realty International, who took this dream and brought it to fruition. Today it is supported by all KW associates.

KW Cares continues to support extraordinary personal challenges of Keller Williams associates and their families. The charity continues to be committed to supporting associates in need during times of regional, national, and personal crisis.

kwCARES

Page 21: 2012 presentation

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KW Cares

KW Cares kw

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$20,259,059

KATRINA

Cumulative

Cumulativekw

CARES

Page 22: 2012 presentation

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Stats

Stats

KW Re/Max C21 CBB

35%

(47%) (44%)

(26%)

Major Franchisors. Growth 2005-2010

*2011 competitor numbers not available at time of publishing

kw

kw

Page 23: 2012 presentation

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CBB KW C21 Prudential Re/Max0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Outpacing the Industry

Outpacing the Industry

Agent Count End of 2010

*2011 competitor numbers not available at time of publishing

kw

1 3 4 52

Keller Williams Realty is the second-largest real estate franchise in the United States based on the total number of sales professionals, according to research conducted by REAL Trends.

kw

Page 24: 2012 presentation

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1.7%

12.4%

Outpacing the Industry

Outpacing the IndustryUnits Closed Per Agent – 2011

kw

7.4%

19.5%kwNAR

Change in units Closed END OF YEAR 2011

kwNAR

Total Commissions Earned End of 2011

$2.6 Billion

$2.37 Billion+10%

Page 25: 2012 presentation

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Profit Share

Profit Share kw

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000 $328,499,399Cumulative

Cumulative

Page 26: 2012 presentation

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What Others are Saying?

What Others are Saying? kw

2011 Swanepoel Trends Report

“Keller Williams is unquestionably the fasted growing and most exciting real estate company in the world. Its shadow is all the most of its competitors see!””

Stefan Swanepoel

Page 27: 2012 presentation

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That’s more that’s ERA, GMAC, Prudential, C-21, Realty World,

Realty Execs, Better Homes, Exit, Sothebys, …. COMBINED!!

NC Region

NC Region kw

Six States (MT, WY, ND, SD, MN, WI)

1,544 Agents

23 Market Centers

Approx 1,000 In the Twin Cities

Page 28: 2012 presentation

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NC Region Local Market Stats

NC Region Local Market Stats kw

322%Owner Profit 2011 vs 2010

74%Profit Share 2011 vs 2010

25%Written Contracts 2011 vs 2010

Page 29: 2012 presentation

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NC Region Local Market Stats

NC Region Local Market Stats kw

Page 30: 2012 presentation

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NC Region Local Market Stats

NC Region Local Market Stats kw

Page 31: 2012 presentation

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Two years in a row!

Best Place to Work in MN

Best Place to Work in MN kw

Page 32: 2012 presentation

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Keller Williams Realty is built by agents, for agents.

We’re a company that’s changing lives.

The next one could be yours…